McEwen Mining has secured a permit in relation to the Final Environmental Impact Statement (EIS) for the Gold Bar project in Eureka County, Nevada, US.
With receipt of the signed record of decision (ROD), the company is set to begin construction of the project.
McEwen Mining chairman and chief owner Rob McEwen said: “Our mission to build Gold Bar has been ongoing since 2013, during that time we have overcome many challenges involved in bringing a new mining project to fruition.
“Gold Bar is the first new gold mine in Nevada to gain permit approval in several years. We advanced from draft environmental impact statement submittal to a record of decision in under eight-months, a very brisk pace for the last leg of the permitting process.”
The company is planning to qualify for inclusion in the S&P 500 Index.
Other assets in the company’s portfolio include the San José mine and the Los Azules copper project in Argentina, the El Gallo Gold mine and El Gallo Silver project in Mexico, the Black Fox mine in Timmins, Canada.
The Black Fox complex was acquired last month, and enables the company to enhance its estimated annual production for next year by 20% to 185,000 gold equivalent ounces.
Based on a feasibility study, the project is estimated to have an initial capital of $60m, after-tax internal rate of return (IRR) of 20% at $1,150/oz gold and of 36% at $1,300/oz gold.
Construction of the project is expected to take around ten months to a year to complete.
The company expects the project to add an average annual production of 65,000oz from 2019.